Housing on Long Island: Communities will be eligible for $10 million in state funding to speed up development

Empire State Development, the state's primary business-aid agency, voted Thursday to create a new $10 million program that will help Long Island communities identify and vet potential sites for new multifamily housing, such as townhomes or apartments. 

Under the Long Island Forward Housing Program, municipalities can apply to cover the costs of professional services, such as land appraisals and traffic studies, that are needed to make a site suitable for development. The program aims to spur more multifamily housing in strategic locations, such as near Long Island Rail Road stations and in downtown areas. 

"By breaking down barriers to development and providing municipalities with critical technical expertise, we're not just building homes," Gov. Kathy Hochul said in a statement. "We're building pathways to economic opportunity, strengthening communities, and ensuring Long Island remains competitive in attracting and retaining talent."

The program was created as a result of an application from the Long Island Regional Economic Development Council, an economic advisory board made up of Long Island business, union, education and nonprofit leaders. The council had identified the inadequate supply of housing on Long Island as the region's most pressing need. Builders often cite the yearslong municipal approval process for projects as a top barrier to new construction.

More than half of Long Island renters, 51%, face a housing cost burden, meaning they pay at least 30% of their gross income toward rent and utilities. That percentage was the highest among all regions in the state, including New York City, according to a report last year from State Comptroller Thomas P. DiNapoli.

The fund will not provide direct grants to municipalities. Instead, the state will directly pay consultants for the professional services needed before development can begin, according to Empire State Development.

The technical services could include architectural consultations, economic impact analyses, state environmental quality reviews, financial feasibility studies or traffic impact studies.

That could include studies of municipal sites, such as vacant land or underused parking lots. Local governments could also partner with developers to study housing on private land.

The studies could help provide more information as communities evaluate new housing proposals, said Pilar Moya-Mancera, executive director of nonprofit Housing Help in Greenlawn, and an advocate for affordable housing. 

"We have a tendency on Long Island to be against development because we don’t know what’s next," she said. "If we have studies that show the impact ahead of time, I think that could change the public’s mind of what development can be and mean." 

Municipalities designated by the state as pro-housing communities because of their commitment to supporting new construction will get priority in applying for funds. Seventeen Long Island communities have received the designation, including Long Beach, Mineola and Patchogue, and 10 more have submitted letters of intent to join.

Creating different types of affordable housing options is essential to retaining young, talented workers and supporting the region’s businesses, said Linda Armyn, president and CEO at FourLeaf Federal Credit Union and Kimberly R. Cline, president of Long Island University, in a joint statement.

"By helping municipalities identify development opportunities and engage with developers, this program will transform underutilized sites into vibrant housing developments, strengthening our downtowns and transit-oriented communities," said Armyn and Cline, the cochairs of the Long Island Regional Economic Development Council. 

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.